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Which best explains why producers choose to specialize? Check all that apply.

{} to increase competition


{} to gain a comparative advantage


{} to decrease the amount of goods produced


{} to maintain market share


{} to increase efficiency

2 Answers

2 votes

Answer:

2,4,5

Step-by-step explanation:

2021 edg.

User Xmojmr
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Specialization leads to reduced competition since there are more individual markets. The amount of goods could be increased or decreased after specialization. Market share in a sense could be maintained with specialization but specialization means opening up to a new market; also the efficiency of a process is increased if it is more specialized (tires versus whole cars). Specialization also could help the producer gain a comparative advantage if there are the conditions; for example if there is iron and carbon in a country, it makes sense to specialize in stell constructions. Hence 2, 5 are very good choices and 4 is reasonable.
User Letsc
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